Satterley Property Group looking to nearly triple land sales with two new estates
Satterley Property Group has set the bar high for themselves, looking to attain 10% market share in Melbourne with 1,000 lots per year to be sold – nearly triple their current effort.
In line with this, they are doubling the number of land estates they’re releasing onto the market with two new communities, one in Point Cook and one in Tarneit, to be launched this year. These two new estates, in Melbourne's growth corridors, join the company's existing estates in Melbourne include Coburg Hill and Doreen’s Riverstone.
Jack Hoffmann, Victorian general manager for Satterley, said that by the end of the year all four estates will be selling.
He noted that they had been slowly gaining a Melbourne foothold, but that they were looking to be more aggressive and to attain a 10% market share. This would require selling 1,000 lots per year.
At present, however, Property Observer notes that they will need to nearly triple their current efforts of around 360 lot sales per year.
Hoffman’s plan to achieve this is to focus on the much-discussed segment, and at present underrepresented in the overall market, of first home buyers.
"Buyers will be across all levels - second and third home buyers, investors - but it is the first home buyers we believe will make the difference in 2014,” said Hoffmann.
"There has been a lot of publicity about the drop in the number of first home buyers - from an average of 18.5% of all buyers down to 12.5%. We don't believe that is a long term trend and we expect first home buyers to return to normal levels in 2014.”
He noted that 20% of Satterley’s sales come from first home buyers, with affordability still being the biggest driver.
Coburg Hill, where there were a series of townhouses priced at approximately $600,000, saw the first three purchases come from first home buyers. The $79 million 20 hectare former Kodak site was purchased in 2010. The Brownfield estate (pictured below) is on the verge of selling out.
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Riverstone and Plenty River, two estates in Doreen, were initially a 60-hecatre site and Satterley’s first foray into Melbourne four years ago. Sales at Plenty River, with 450 lots, finalized earlier this year, with Riverstone now on the market from $157,000 for land lots.
"There is a lot of competition at Doreen and there is a difficult balancing act in managing supply and demand with a lot more land been approved for development over the past few years," Hoffmann conceded.
"The low interest rates have helped sales. Employment is stable and population growth is going in the right direction. The first home buyers grant is still there for new homes, so that helps us,” he said.
The two new estates
Point Cook estate: Currently unnamed
Located: Hacketts Road
Total dwellings: 2,000 expected
This estate is likely to be first to hit the market, with Satterley having bought the 125 hectare site for $100 million from the state government.
Andrew Egan, director of selling agency Biggin Scott Land, had advised earlier in 2013 the site was being offered in three parts, each between 39 and 43 hectares.
Satterley’s proposed development will create a new master planned suburb with a projected population of more than 5,000 people on Melbourne’s outskirts.
Tarneit estate: Currently unnamed
Located: 990 Sayers Road
Total dwellings: 850 lots expected
The site was purchased in 2010, and it was noted that some delays in development approvals have been seen. Wyndham City records show that an application for the residential subdivision was lodged in September 2012.
Across both, there has already been significant builder interest with 26 builders already on board to build display homes in both areas.
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